When people in Springfield cast ballots on a proposed MGM casino on July 16, the vote will take place before an important decision by the state.

Even if voters approve the casino project, Las Vegas-based MGM will still need to pass a background check by the investigations and enforcement bureau of the Massachusetts Gaming Commission before it can apply for an operating license. Under the commission's two-step licensing process, MGM first needs to clear the investigation on finances and ethics in order to then seek the lone license in Western Massachusetts to operate a resort casino.

Michael Mathis, vice president of global gaming development for MGM, met with the Indian Orchard Citizens Council in early January. The Republican file photo

MGM, as required under state regulations, is paying $75,000 to reimburse the city for the costs of mailing a letter to 59,702 households to educate voters that the ballot question is being held before the commission completes background checks. It cost about $36,000 just for postage.

The letters were sent on Friday and should have started to arrive at mailboxes on Saturday, said Springfield Election Commissioner Gladys Oyola.

The mayor of Springfield and the City Council both approved holding the ballot question before completion of the investigation. Both also approved a host community agreement with MGM that is mentioned in the letter.

Michael Mathis, vice president of global development for MGM, said he is confident the company will pass the background checks.

"We're not concerned about the ultimate result of the background check," Mathis said. "It's a very comprehensive process and one that we have went through in a number of other jurisdictions."

MGM is planning a $851 million casino on 14.5 acres in the South End of Springfield's downtown. MGM needs approval of city voters before it can apply to the commission for a license to operate the resort.

The letter, signed by Springfield Mayor Domenic J. Sarno, says in part: "As part of the background checks, the commission reviews such things as the integrity, honesty, good character and reputation of the applicant; the financial stability, integrity and background of the applicant; the business practices and the business ability of the applicant to establish and maintain a successful gaming establishment; and whether the applicant has a history of compliance with gaming licensing requirements in other jurisdictions."

Springfield Mayor Domenic J. SarnoMark M. Murray/The Republican

Stephen P. Crosby, chairman of the gaming commission, said it is possible MGM could fail the background check, but he said it is more likely a partner would be found unsuitable and would have to be replaced.

Crosby said the gaming commission is looking at every area where MGM does business, but he does not comment on investigations.

A spokeswoman for the commission said background investigations on casino resorts should be complete by the end of August or early September.

The commission would award the Western Massachusetts casino license around February of next year.

MGM, which is proposing a casino in Springfield, agreed to divest its part ownership of a New Jersey casino in 2010, after New Jersey's Division of Gaming Enforcement found a co-owner of MGM's casino in Macau, Pansy Ho, to be an "unsuitable" partner for MGM because of her financial ties to her father, Stanley Ho, who had connections to organized crime, according to 2009 report by the New Jersey division.

In February, MGM petitioned New Jersey for the right to reapply for its license in New Jersey. The New Jersey Casino Control Commission voted to approve MGM's request to again seek the license. MGM is seeking to reacquire its interest in the Borgata, an Atlantic City casino.

In its filing in New Jersey, MGM said it now controls 51 percent of MGM China Holdings, which is the parent of MGM Macau, cutting Pansy Ho's ownership to 27 percent.

Stanley Ho no longer has ownership in his daughter's company, and is having health problems, according to MGM.

Lisa Spengler, a spokeswoman for the New Jersey Division of Gaming Enforcement, said there is no timetable for when an investigation into MGM's petition needs to be completed. It will take as long as necessary to complete a thorough investigation, she said by e-mail.

Once the investigation is completed, a report is prepared by the division, then the state Casino Control Commission will vote on whether to actually grant MGM's request to again hold a license in New Jersey.

Mathis said he was not concerned about how the review in New Jersey might affect the ultimate determination on the company's suitability in Massachusetts.

"In terms of MGM Springfield, none of our Asian relationships are an issue," Mathis added. "They are not partners (in the Springfield project) It's not an issue for Springfield."

Kevin E. Kennedy, chief development officer in Springfield, said city officials feel good about holding the ballot question before the commission completes background checks. Kennedy said he is confident that MGM will pass the background checks.

MGM would compete with two other operators for the Western Massachusetts license. The Mohegan Sun is planning a casino in Palmer and Hard Rock International is proposing a casino on property at the Eastern States Exposition in West Springfield.